How to Read Stock Charts

Reading a stock chart means interpreting price action to understand the current trend, the levels where price is likely to react, and the momentum behind each move. A chart is a record of every trade in a period, and learning to read it lets you see who is in control, buyers or sellers, without relying on opinion. The foundation is the candlestick: each candle shows the open, high, low, and close, and the shape of its body and wicks reveals the tug-of-war inside that bar.

From there, you layer on structure. Support and resistance mark the levels where moves tend to pause or reverse. Chart patterns and candlestick patterns describe how price organizes into recognizable shapes that hint at continuation or reversal. More advanced traders use smart money concepts, order blocks, and fair value gaps to map where large institutional orders likely sit. The guides below walk through each piece, from your first candle to liquidity-based reads, with illustrative charts so the concepts click.